TIF loan for theater OK’d

Tuesday

Jan 8, 2013 at 12:50 PMJan 8, 2013 at 12:53 PM

Lois Westermeyer

Although 20th Century Fox’s “Ice Age” movie series has proved profitable, the local theater hosting such shows found it can no longer operate in that era and is preparing to enter the digital age.Following a contract presentation Monday night, members of the Pontiac City Council entered into an agreement for $145,000 in loans and property to keep the landmark business downtown.The agreement calls for the city to loan Peter Occhipinti, owner of DMRG Theatres, which owns both Crescent and Eagle Theaters in Pontiac, $115,000 in TIF Funds, in a 10-year deal with 4 percent interest annually. In addition, the agreement calls for the city to purchase the vacant Eagle Theater for $30,000.Occhipinti’s son, Michael, addressed council members and said if Crescent Cinemas does not convert to digital equipment it will have to close, as this is the last year movie studios will release any movie on film. Many movies now do not offer a film release, Occhipinti added.“We have been meeting with the family for several months to keep this downtown landmark going,” said Mayor Bob Russell. “It serves families of all ages and incomes. Thousands of small theaters will be shutting down and we don’t want to see that happen.”Occhipinti stated that digital conversion would open up the variety of offerings and allow the showing of new movies in a timelier fashion.“We’re getting ready to show ‘Lincoln’ this Friday. It opened in November. Digital will allow new movies sooner and we’ll be able to show 3D movies and other digital offerings, such as opera or Broadway productions, anything filmed digitally,” he said.When theaters began converting to digital equipment, Occhipinti said the cost was too high, nearly $300,000 per screen, but that the cost has steadily been dropping. Crescent Cinemas, located at 313 W. Madison St., will convert two screens.“While the cost might still drop further, we have to do this now,” he said. He explained that the theater gets money from studios to show films and that money would be used for the monthly loan payment of $1,164.Additionally, having the funding all at once means the theater can remodel the lower floor to include restrooms.Occhipinti said from the time the digital equipment is ordered, it takes about five weeks to receive it and four days to install equipment per screen.The theater does not plan to shut down operations during the remodeling or conversion work.City Administrator Bob Karls said pictures of downtown Pontiac from the 1930s show the movie theater, which for many years was owned by the Kerasotes family and operated as a GKC theater. The Occhipinti family has owned the theater for 11 years.“Attendance reached a really good level in 2001 and it has dropped off some, but it’s been steady the past few years and last year there was a 2.5 percent increase in attendance over the year before,” Mike Occhipinti said.Karls said quite a bit of interest has been shown in the Eagle Theater building, 319 N. Plum St., which has been vacant a number of years.After closing as a theater, it housed a radio-controlled car track, a health club and a paintball facility.“There’s been quite a bit of interest in the building,” Karls said, but nothing has advanced because the building has a bad roof.With the city’s purchase of the building, the roof will be replaced and the building cleaned out and then the city will entertain proposals for its use, he said.Council members also approved a rent subsidy program for a retail store to be opened by Judy Barnard at 317 N. Mill St., next to the General Store.Barnard appeared before the council and said the retail store would sell her own handmade teddy bears and snowmen, as well as other merchandise. She said her mohair bears have earned industry awards and recognition.The Pontiac native said she has been renting vendor space in a store in Washington for a dozen years, but wants to move her retail operation to Pontiac.“I want to bring my wares back to Pontiac. I like the direction the downtown is going and I want a chance to provide something I think people will be looking for,” she said.The subsidy agreement is for one year, with the city paying 100 percent of rent the first three months, 75 percent the next three months, 50 percent the next three months and 25 percent the final three months.“Something that hasn’t been made clear is the city is not just paying this money with no return. With every one of these agreements, the city receives monthly payment back. The first three months, the city receives 5 percent of sale proceeds, even if it is more than the rental amount,” Russell said. “The next three months the city receives 3 percent of proceeds each month, the next three months is 2 percent and the final three months is 1 percent. After the program, the retailer pays their own lease amount, but keeps all proceeds.Barnard said she hopes to have her retail shop open sometime in February.In a final matter, a request to use the council chambers on a monthly basis by an Avon representative was tabled and sent to the Public Property Committee. Councilman Frank Panno and others stated they wanted to look over the city’s current practices of how often and to which groups the chamber room is currently leased and adopt a uniform policy.